Levelling up minister Neil O'Brien has told councils they will have to improve their ‘governance, efficiency and service delivery' in return for more devolution, The MJ understands.

Mr O'Brien, who was chancellor George Osborne's special adviser when he proposed devolution to city regions governed by directly-elected mayors in 2014, also indicated his support for devolving to ‘functional economic areas' in a letter to the District Councils' Network.